Logo of Phnom Penh Post newspaper Phnom Penh Post - Japan calls for policy changes

Japan calls for policy changes

Content image - Phnom Penh Post
Representatives of Japanese companies and investors on Wednesday submitted a list of policy recommendations to the government concerning 21 challenges to the Kingdom’s business climate. Photo supplied

Japan calls for policy changes

Representatives of Japanese companies and investors on Wednesday submitted a list of policy recommendations to the government concerning 21 challenges to the Kingdom’s business climate.

Japanese Ambassador to Cambodia Masahiro Mikami and leaders of the Japanese Business Association in Cambodia (JBAC), Japan International Cooperation Agency and Japan External Trade Organisation (Jetro) handed the list to Council for the Development of Cambodia (CDC) secretary-general Sok Chenda Sophea.

The recommendations were submitted during the 19th Cambodia-Japan Public-Private Sector Meeting, held at the CDC with Chenda Sophea presiding.

The delegation highlighted four of the 21 issues in the list as priorities.

First, the delegation called for Cambodian officials to work with their Thai counterparts on temporarily making the Stung Bot-Ban Nong Ian land crossing in Poipet town’s Stung Bot commune in Banteay Meanchey province 100 per cent operational.

Second, it called for adjustments to the minimum tax imposed on qualified investment project (QIP) companies.

Third, it requested clarification as to the conditions under which foreign nationals are entitled to seniority indemnity following voluntarily termination of their labour agreement.

Fourth, it asked for a clear indication of electricity charges and advanced notification of planned power outages.

At the meeting, JBAC chairman Norimasa Yamazaki read a letter his association submitted to Prime Minister Hun Sen earlier that day, thanking the government for organising the event 19 times since 2007.

“At JBAC, we would like to express our appreciation for the spirit of cooperation from the government of Cambodia at these meetings with the relevant ministries and organisations, which seek immediate action and solutions to each of these issues,” he said.

Yamazaki said the list noted the results of discussions with the government during the 2019-2020 season, and underscored the issues that needed resolution during the 2020-2021 season.

“JBAC also hopes that the issues raised in these policy recommendations will be addressed at the Government-Private Sector Forum [GPSF] to be tackled immediately.

“We understand that the GPSF is a key forum in developing the important policy package to facilitate trade and investment,” he said.

The 19th Government-Private Sector Forum will be held on April 1 and chaired by Hun Sen.

Mikami said the strong support from the government, its ministries and institutions have been helpful in easing the challenges Japanese investors and businessmen in Cambodia face.

He expressed his hopes for a swift resolution to lingering issues, and that the government will launch an action plan at the upcoming GPSF to promote the Kingdom’s competitiveness and further diversify its economy “to the next level”.

The CDC’s Chenda Sophea said the flow of Japanese investment has helped to diversify Cambodia’s industrial sector from garment to non-garment manufacturing – particularly electronics and automobile accessories.

“Such investment from Japan creates new opportunities for Cambodia, diversifies its economic base and enables its entry into the global supply chain in line with the government’s Industrial Development Policy 2015-2025,” he said.

Between 1994 and the end of last year, the CDC approved on 143 projects of Japanese foreign direct investment, worth about $2.785 billion.

Jetro data shows that Cambodia exported more than $1.7 billion worth of products to the Japanese market last year – up 7.7 per cent from 2018.

The Kingdom imported more than $563 million worth of products from Japan last year.

MOST VIEWED

  • Would you like fries with that? US burger chain makes Phnom Penh debut

    California-based The Habit Burger Grill restaurant chain is all set to serve up a delicious array of charbroiled burgers and sides at its newest international location in the centre of Phnom Penh. The Habit is “renowned for its award-winning Charburgers grilled over an open flame,

  • Banteay Meanchey flood victims receive aid

    Prime Minister Hun Sen on Wednesday provided aid to more than 10,000 families affected by flooding in Banteay Meanchey province’s Mongkol Borei district and offered his condolences to the 18 victims who drowned in the province over the past week. He said flooding had occured in

  • PM urges caution as Polish man tests positive for Covid

    The Ministry of Health on Wednesday reported that a 47-year-old Polish man tested positive for Covid-19 after arriving in Cambodia on Monday. There are a total of six Covid-19 patients currently in the country, all of whom are being treated at the Khmer-Soviet Friendship Hospital

  • Banteay Meanchey floods kill one more as death toll reaches 15

    As floodwaters start to recede in Pursat, Battambang and Pailin provinces and Phnom Penh, Banteay Meanchey continues to bear the brunt as one more person was killed on Monday, bringing the total number of flood-related deaths to 15 in the province this month. Banteay Meanchey provincial

  • Serving coffee with a side of robots

    The eye-catching glass building surrounded by greenery at the intersection of Streets 371 and 2002 in Phnom Penh’s Sen Sok district is more than just another coffee shop where you can while away a few hours. UrHobby House cafe is filled with robots and characters from

  • Floods prompt evacuations in Kampong Speu

    Rain-induced floods and water flowing from Kampong Speu province have submerged the houses of 1,527 families living close to the Prek Thnot River in Spean Thma, Tien, Kong Noy and Roluos communes in Phnom Penh’s Dangkor district, according to data from local authorities. Spean Thma